Operating Principles for Impact Management
FullCycle Celebrates the One-Year Anniversary of the IFC-Led Operating Principles for Impact Management
The FullCycle mission is to accelerate the transition from a high carbon to a low carbon economy. It’s about maximizing climate-positive impact andmaximizing returns for our investors.
This is why our decision to become a signatory of the IFC-led Operating Principles for Impact Management is so important.
If you’re not familiar: the Operating Principles are a framework, launched at last year’s World Bank and IMF Spring Meeting, for investors to ensure that impact considerations are explicitly integrated throughout the lifecycle of any investment. That means positively addressing the Sustainable Development Goals (SDGs), and other widely recognized goals such as COP21.
BlackRock, Inc., Credit Suisse, BNP Paribas Asset Management, are among nearly 100 firms that have also signed on as signatories. Last month, we (virtually) celebrated the one-year anniversary of the launch of the Operating Principles and on April 17, the IFC held a global (remote) workshop sharing best practices on implementation, disclosure and verification.
The Principles were established by a group of veteran asset owners, managers, and allocators who all share the common goal of managing investments that would have a demonstrably positive social or environmental impact. For FullCycle, this is business as usual. For me, this is personal.
I have been investing for impact since 2005, on the founding team of Google.org, a philanthropic and investment fund focused on climate change and poverty alleviation, making both grants and investments to support these global programs. For several years, I also served on the board of BRAC(USA), one of the largest and most effective NGOs in the world, dedicated to economic empowerment, especially for the most vulnerable. As someone who has dedicated my career to applying capital and technology towards making a positive impact in communities around the world, it is significant that FullCycle is publicly committing to an investment approach that results in meaningful and measurable impact. In fact, it’s more than a commitment — it’s our business model: we believe that investing in market-ready technologies to abate carbon will not only yield a high return on investment, but it will also generate the largest climate impact per dollar invested. In that respect, signing on to Operating Principles was a natural next step.
Right now, amidst the uncertainty and challenges of a global pandemic, I offer words of hope. As our economic, political and social structures are being disrupted, this creates an opportunity for all of us to invest our time and financial resources in building new economic models, more resilient cities and green infrastructure, which lead to more equitable outcomes. At FullCycle, we’re just getting started. While we are all celebrating the one-year anniversary of the launch of the Operating Principles — from a distance and virtually — I hope this moment gives us all an opportunity to reflect on how a rigorous focus on impact could be the driving force for positive change in this new era, leading to an economic transformation that benefits people and the planet.